"Neo-liberalism" is a set of economic policies that have become
widespread during the last 25 years or so. Although the word is rarely
heard in the United States, you can clearly see the effects of
neo-liberalism here as the rich grow richer and the poor grow poorer.

"Liberalism" can refer to political, economic, or even religious
ideas. In the U.S. political liberalism has been a strategy to prevent
social conflict. It is presented to poor and working people as
progressive compared to conservative or Rightwing. Economic liberalism
is different. Conservative politicians who say they hate "liberals" --
meaning the political type -- have no real problem with economic
liberalism, including neoliberalism.

"Neo" means we are talking about a new kind of liberalism. So what
was the old kind? The liberal school of economics became famous in
Europe when Adam Smith, an Scottish economist, published a book in 1776
called THE WEALTH OF NATIONS. He and others advocated the abolition of
government intervention in economic matters. No restrictions on
manufacturing, no barriers to commerce, no tariffs, he said; free trade
was the best way for a nation's economy to develop. Such ideas were
"liberal" in the sense of no controls. This application of individualism
encouraged "free" enterprise," "free" competition -- which came to
mean, free for the capitalists to make huge profits as they wished.